Hello everyone, I am Detective Brother!The fact that the United States is one of the world's largest Bitcoin holders may surprise many people. Unlike cryptocurrency giants that track market dynamics and prices, the US government is not concerned about the rise and fall of Bitcoin prices
Hello everyone, I am Detective Brother!
The fact that the United States is one of the world's largest Bitcoin holders may surprise many people. Unlike cryptocurrency giants that track market dynamics and prices, the US government is not concerned about the rise and fall of Bitcoin prices. This Bitcoin "Treasure" of the US Government: From Cybercrime to the Cryptographic Journey of the Department of Justice
As is well known, the US government is one of the world's largest holders of Bitcoin, not because of its special passion for cryptocurrencies, but because it is a by-product of a lengthy and complex legal process. Yes, you heard me right. This pile of Bitcoins is more the result of a legal process than a strategic plan.
Let's go back to the beginning of the story. How did the government obtain these Bitcoins? Simply put, it is caught from cybercriminals and the dark web market. You may be thinking, wow, with so many Bitcoins, is the government suddenly becoming the super rich in the crypto world? However, this is not the case. This process is much more complex than this.
Firstly, these bitcoins are mainly stored in hardware wallets controlled by the Ministry of Justice, the Internal Revenue Service, or other institutions. Yes, you heard me right. It's the Ministry of Justice and the Internal Revenue Service. You may be thinking, does this mean that the government has more advantages in taxation? However, this is not the case. The value growth of these Bitcoins is not for tax purposes, but to complete a lengthy legal process.
Now, let's review this process. The process from seizing illegal Bitcoin to receiving the final order to clear tokens for cash may take several years. So, if you think the government has made a lot of money on these Bitcoins, then you are completely wrong. In some cases, this is beneficial for the government as the value of cryptocurrencies skyrockets. However, for most government agencies, this is just a big problem they have to deal with.
However, in other words, the seizure of these Bitcoins is not entirely without value. At least, they demonstrate the government's determination and ability to combat cybercrime and protect the public interest. Moreover, when government agencies control encrypted assets, this process does not mean that Uncle Sam (the US government) immediately owns these assets. Only after the final confiscation order is issued by the court will the government acquire ownership and transfer the tokens to the US Marshal Service, which is primarily responsible for clearing seized assets.
So, how does the government handle these Bitcoins? Firstly, they are stored in special hardware wallets to prevent hacker attacks or tampering. Then, they are placed in a larger 'bank vault' to ensure their safety. Finally, if needed, they will be sold and used to fund government projects or compensate victims.
In many cases, government sales revenue will be used to compensate victims. For example, Bitfinex stated in July that it received over $300000 in cash and 6.917 Bitcoin Cash (BCH) from the Department of Homeland Security, with a value of approximately $1900 at the time. This also means that when the government needs to track or arrest criminals, they may seek financial support to pay license fees for encryption tracking software.
However, for those curious about the US government's holdings of Bitcoin, they may be disappointed to find that even the wealthiest cryptowhales cannot match the government's holdings. After all, this is the result of a legal process that has lasted for several years, not a strategic plan.
Overall, the US government's holdings of Bitcoin are an interesting and complex story. It not only demonstrates the government's determination and ability to combat cybercrime and protect public interests, but also demonstrates the importance of cryptocurrency as an asset and evidence in legal proceedings. As for where these Bitcoins will ultimately flow, we can only wait and see.
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